The North America Epoxy Structural Adhesive market was valued at US$1.722 billion in 2020 and is expected to grow at a CAGR of 6.36% over the forecast period to reach a total market size of US$2.651 billion by 2027.
Epoxy structural adhesives are widely used because they have a high degree of strength, release less volatile organic compounds (VOCs) during the curing process, and can withstand heavy loads. It is used for bonding various substrates like metal, ceramics, wood, concrete, composites, and rubber in aerospace, buses & trucks, and railways. Besides offering excellent strength, epoxy structural adhesives also exhibit good mechanical, thermal, and electrical properties. Epoxy resin adhesives used for coating concrete surfaces have become more popular in North America, particularly for automotive, aerospace, civil engineering, and industrial maintenance applications. In Canada, infrastructure projects are on the rise. The government plans to invest over USD 180 billion (CAD) in key infrastructure over the next decade under its 'Investing in Canada Plan'. A wide range of long-awaited projects is included, including transportation, affordable housing, and rural development. Such government initiatives are boosting the demand for epoxy structural adhesives in the region.
Epoxy adhesives for structural applications are materials that harden on contact with the substrate and can hold two surfaces together by surface contact. In spite of their inability to hold bonded surfaces over time and sensitivity to shock, vibration, and temperature changes, these adhesives are capable of holding forces for long periods of time. The growing construction, automotive, and aerospace industries in North America especially in the US have led to the advent of new building materials. Some of these materials are synthetic raw materials for decorative applications, glass, and insulation foams. In spite of the worldwide shutdown of air travel, the US exported over $90 billion in aerospace & defense products in 2020. As of March 31, 2019, there were more than 1.18 million electric vehicles on the road in the U.S. Such stats illustrate the increased demand of such industries which is directly contributing to the growth of the epoxy structural adhesive market. (Source: aia-aerospace.org & eei.org)
Growth Factors:
In construction, epoxy adhesives are typically used to repair concrete and anchor posts. Woodworkers and carpenters also use them in construction to strengthen the adhesion to wooden surfaces. Steel, carbon laminates, and reinforcement plates, as well as beams and columns, are commonly bonded using these adhesives. Many public infrastructures use epoxy adhesives for joining precast materials, including bridges. The adhesive is also used to bond steel reinforcement components, carbon laminates, and concrete slabs and columns. One of the world's largest construction markets is in the United States. Numerous mega-projects, including California's $77bn high-speed rail construction project, are currently underway. A public sector high-speed rail project in California, California High-Speed Rail (CHSR) is currently under construction. In 2 hours and 40 minutes, it will connect the union station in downtown LA and the Anaheim Regional Transportation Intermodal Center, covering 380 miles (612 km). Two tunnels will reportedly carry up to 4,400 people per hour through the People Mover Tram system project, a 1.5-mile underground tunnel. Massive construction projects are planned throughout Canada. Investing in Canada Infrastructure Program, for instance, has provided over USD 52.7 million to complete several infrastructure projects in Canada and Alberta together. In total, USD 150 million is being allocated for the repair and improvement of community infrastructure facilities across the country by the Community Infrastructure Improvement Fund (CIIF). A USD 8 billion project has been approved by TC Energy to transport as many as 830,000 barrels of oil per day from Alberta to Nebraska, equal to a fifth of Canada's daily oil exports to the United States. Mega construction projects can boost the epoxy adhesive market significantly since epoxy adhesives are a crucial component of construction.
Restrain:
Since epoxy formulation requires epoxy, which in general, is very expensive. A cure time of several days is typical for epoxy resin installations. Furthermore, the duration of the project also depends on the epoxy coating. In addition, environmental regulations are restricting the market because epoxy resin leaches chemicals when disposed of in the water.
Since epoxy structural adhesives are dependent on industries such as automotive, aerospace, energy, and others, the aftermath of the COVID-19 pandemic has negatively affected this market. Automotive companies had shut down or reduced their operations. This led to structural adhesive demand temporarily declining during COVID-19. Currently, the aerospace sector is experiencing a decline in demand due to declining international travel levels and falling income levels among its customers which is indirectly affecting the epoxy structural adhesive demand. Airlines for America, for example, reported that commercial airline passenger volumes in September 2020 were 68% lower than in September 2019, which has long-term implications for manufacturers and supply chains, along with the entire air travel industry.
Segmentation